Tredegar Board Declares Dividend

The board of directors of Tredegar Corporation (NYSE:TG) declared a quarterly dividend of seven cents ($0.07) per share on the company’s common stock. The dividend is payable on April 1, 2014 to shareholders of record at the close of business on March 14, 2014.

Tredegar Corporation is a manufacturer of plastic films and aluminum extrusions. A global company headquartered in Richmond, Virginia, Tredegar had 2012 sales of $882 million. With approximately 2,700 employees, the company operates manufacturing facilities in North America, South America, Europe, and Asia.

Shareholders of Tredegar Corp. looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the June covered call at the $25 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away.